Paying in Cash vs. Financing of Car

November 27, 2019/Local New Car Dealer Directory

Do car dealers accept cash?

Yes, they do but telling them is that you are going to make a payment in cash is the worst idea. You should never consider doing this at the time of buying a car. As a buyer, our perceptive of paying in cash is different. We think cash will bring us a better deal but our thinking is entirely wrong.

Should I pay in cash or opt for the option of Financing?

You can buy a car by considering the option of either paying in cash or finance the car. Financing means monthly payments for over a year or two and taking in cash means car is your upfront. Everything comes with their own benefits and drawbacks.

The benefit of financing is as it will increase the option for you and you can buy a better car. Paying in cash will lower down your options and you will buy what suits best in your budget best.

Financing comes with the drawbacks, you have to make monthly payments for paying off the loan and amount includes interest too. This shows you are paying extra as a part of the interest which leads to creating hole in your bank balance.

Paying whole in cash is a little bit of a tough task as you have spent your savings or capital in buying a car, which is definitely not a smart decision. There are chances dealers can tie you with the zero percent financing which is a win-win situation for you both. He will also earn by financing and you don’t have put all your money at once.